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Financial End of Year and Tax Refunds

By on March 19, 2014 in Uncategorized

Super tax on the Monopoly board

It’s the end of the tax year on 5 April, and time to get savvy with financial stuff.

From 6 April, you can claim back any tax you may have overpaid from April 2013 onwards.

This situation can occur if you have two or more part-time jobs, or your employer has used the wrong tax code.

Students can get caught in this trap if they work during holidays, but not during term time. Employers use the PAYE (Pay As You Earn) system to deduct tax on a monthly basis from employees’ pay.

But the amount of tax you should pay depends on annual earnings.

So if you had a summer job last year earning £250 a week for 10 weeks, you may have been stopped some tax. But with annual earnings of only £2,500, so you are way below the £8,105 threshold for paying tax.

The Inland Revenue has some calculators you can use on its website, and if you think you have overpaid, contact your local tax office. You will have to fill in a form P50 to make your claim. Beware of online companies offering help, as they will charge you for something you can easily do yourself, free of charge.

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